Another month, guess what, take a lucky guess, it is the same old story, HM Government, spends more money than it receives via taxes and duties.
Now we are in a post Covid 19 world. UK’s HM Government needs to fund many new demands. [www.dmo.gov.uk]
Another deficit month, thus to bridge the gap, needs to borrow on the bond market In June 2022, the HM Government had to borrow money to meet the difference between tax revenues and public sector expenditure. The term for this is The PSNCR: The Public Sector Net Cash Requirement. There were only 3 auctions of Gilts (UK Government Bonds) by the UK Debt Management Office to raise cash for HM Treasury:-
28-Jun-2022 0 1/8% Index-linked Treasury Gilt 2031 3 months £1,011.9750 Million
08-Jun-2022 1% Treasury Gilt 2032 £3,125.0000 Million
07-Jun-2022 0¼% Treasury Gilt 2025 £3,075.0000 Million
£1,011.9750 Million + £3,125.0000 Million + £3,075.0000 Million = £7,211.975 Million
£7,211.975 Million = £7.211.975 Billion
On another way of looking at it, is in the 30 days in June 2022, HM Government borrowed:- £240.39916666666666666666666666667 Million each day for the 30 days.
We are fortunate, while the global banking and financial markets still has the confidence in HM Government to buy the Gilts (Lend money to the UK), the budget deficit keeps rising. What is also alarming, is the dates these bond mature in 2032. All long term borrowings, we are mortgaging our futures, but at least “We Are In It Together……”